July, 2020 Zonia Copper Oxide Deposit€¦ · This presentation contains forward-looking statements and forward-looking information ... July 31, 2016 $75,000 (paid) - January 31,

July, 2020

Zonia Copper Oxide Deposit Arizona, USA

TSX-V: CDU | www.cardero.com

Forward Looking & Cautionary Statements


This presentation contains forward-looking statements and forward-looking information (collectively, “forward-looking statements”) within the meaning of applicable Canadian and US securities legislation. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding any potential increase in shareholder value through the acquisition of undervalued precious metal deposits for development, joint venture or later disposition, the potential to partner with mine developers to achieve production at any of the Company’s properties (existing or future); the potential for the capital costs associated with any of the Company’s existing or future properties to be low; the potential for the Company to outline resources at any of its existing or future properties, or to be able to increase any such resources in the future; concerning the economic outlook for the mining industry and the Company’s expectations regarding metal prices and production and the appropriate time to acquire precious metal projects, the liquidity and capital resources and planned expenditures by the Company, the completion of the acquisition of the Zonia project; the anticipated content, commencement, timing and cost of exploration programs, anticipated exploration program results and the anticipated business plans and timing of future activities of the Company, are forward-looking statements. Forward-looking statements are based on a number of assumptions which may prove incorrect, including, but not limited to, assumptions about the level and volatility of the price of gold; the timing of the receipt of regulatory and governmental approvals; permits and authorizations necessary to implement and carry on the Company’s planned exploration programs at its properties; future economic and market conditions; the Company’s ability to attract and retain key staff; and the ongoing relations of the Company with its underlying lessors, local communities and applicable regulatory agencies.

Accordingly, the Company cautions that any forward-looking statements are not guarantees of future results or performance, and that actual results may differ, and such differences may be material, from those set out in the forward-looking statements as a result of, among other factors, variations in the nature, quality and quantity of any mineral deposits that may be located, the Company’s inability to obtain any necessary permits, consents or authorizations required for its activities, material adverse changes in economic and market conditions, changes in the regulatory environment and other government actions, fluctuations in commodity prices and exchange rates, the inability of the Company to raise the necessary capital for its ongoing operations, and business and operational risks normal in the mineral exploration, development and mining industries, as well as the risks and uncertainties disclosed in the Company’s most recent management discussion and analysis filed with various provincial securities commissions in Canada, available at www.sedar.com. The Company undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events except as required by law. All subsequent written or oral forward-looking statements attributable to the Company or any person acting on its behalf are qualified by the cautionary statements herein.

John Drobe, P.Geo., a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the technical information contained in this presentation and has approved the disclosure herein. John Drobe is not independent of the Company, as he holds common shares of the Company.

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http://www.sedar.com/






Project Location in Central Arizona

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Arizona responsible for 65% of US copper production

$4.87 billion impact on state economy

51,200 mining-related jobs annually

Zonia Project Location

VMS Past-producers and undeveloped

Active mines

Porphyries Past-producers and undeveloped

Active mines

Permitting Advantage: Resource and Phase I production Contained within 100%-owned private land.


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After-tax NPV8% of $192 million

After tax IRR of 29%, with a 2.89 year payback of initial capital

Initial capital cost of $198 million

Cumulative Net Cash Flow After Taxes of $331 million

The PEA is preliminary in nature and includes inferred mineral resources that are too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that PEA results will be realized. Mineral resources are not mineral reserves and do not have demonstrated economic viability.

Preliminary Economic Assessment – March 2018


Base case uses $2.00/lb Cu designed pit shell & $3.00/lb Cu price

NPV@10% Sensitivity to Changes

PRODUCTION PROFILE

Total Tons Leached 92.6 million

Head Grade 0.30%

Mine Life 8.6 years

Payback Period 2.89 years

Mill throughput 30,000 tpd

Copper Recovery (oxide) 73%

Copper Recovery (transition) 70%

Total Copper Recovered 421.5 million lbs

Average Annual Production 49.1 million lbs

OPERATING COSTS

Mining Costs $0.64/lb of copper

Processing Costs $0.74/lb of copper

G&A $0.08/lb of copper

CAPITAL REQUIREMENTS

Initial Capital $198million

Sustaining Capital $40.8 million

43-101 Resource Estimate

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Measured and Indicated Resources of 76.8 million short tons grading 0.33% copper containing 510 million pounds of copper (0.2% copper cut-off grade).

Inferred Resources of 27.2 million short tons grading 0.28% copper containing 154.6 million pounds of copper (0.2% copper cut-off grade).

Low strip ratio of 1:1 waste to mineralized material in base case.

Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources will be converted into Mineral Reserves. Inferred resources are that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality continuity. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.

Classification Cut-Off Grade

(% Cu)

Short Tons (x ‘000)

Copper (%)

Contained Copper (M lbs)

Measured 0.2 15,400 0.42 129.3

Indicated 0.2 61,400 0.31 380.6

Measured & Indicated 0.2 76,800 0.33 510.0

Inferred 0.2 27,200 0.28 154.6

Cut-Off Grade (% Cu)

Strip Ratio

Measured & Indicated Inferred


Copper (%)



Copper (%)


0.25 1.96 54,500 0.43 312.6 16,200 0.37 63.2

0.20 1.01 76,800 0.33 510.0 27,200 0.28 154.6

0.15 0.52 96,200 0.30 578.6 41,600 0.25 205.5

NI 43-101 Resource Estimate


Resources are stated within a Lerch- Grossman optimized pit shell using

the following parameters:

~500 metres

Input Value Mining Cost $1.50/t Process Cost $3.40/t

G&A $0.45/t Recovery Oxide 73%

Recovery Transition 70% Recovery Primary Sulfide 0%

Pit Slope 45° Cu Price $2.50/lb

NI 43-101 Resource Estimate

TSX-V: CDU | www.cardero.com 6

Zonia Block Model on DTM

Blocks with Total Cu > 0.1%

SE

NW

Cross Section Through Centre of Deposit

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Zonia 100% Owned by Cardero

Date Cash (US$) Cardero Shares

Initial Payment $25,000 (paid) -

August 30, 2015 $26,350 (paid) -

October 15, 2015 $150,000 (paid) 1,000,000 (issued)

January 31, 2016 $75,000 (paid) 1,500,000 (issued)

July 31, 2016 $75,000 (paid) -


July 31, 2017 - 2,500,000 (issued)


August 17, 2018 $50,000 (paid) -

October 26, 2018 - 6,179,099 (issued)

October 31, 2018 $573,650* 5,000,000 (issued)

Cardero acquired a 100% interest in the Zonia copper oxide deposit in November, 2018

Total consideration was US$1,925,000

and 22,679,099 common shares of Cardero Resource Corp.

* For the final cash payment of

US$573,650, Cardero made five equal installments of US$126,060 commencing on November 6, 2018 and ending March 31, 2018, for a total payment of US$630,300.


Project History & Existing Infrastructure

17.1 million tons mined from 1966 to 1975; produced 33.2 million pounds of cement copper from the 7.1 million tons placed on heaps

60,000 meters of historical drilling in 700 drill holes, mostly defining near-surface oxide resource

The drill holes were not assayed for gold, silver or other base metals such as zinc

Existing power via a 67Kv line starting at a recently upgraded substation near mine entrance (7.5km). Power line will need upgrading to 1.5MW for production

Sufficient groundwater available on site to support mining operations

Recently upgraded substation close to mine entrance

Mine entrance gate


Mine Site

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1. Leach pad from former production. 2. Mine site and buildings. 3. Signage at entrance to mine site. 4. Pit panorama: Zonia mine site was pre-stripped in 1967, followed by limited production (7 Mt on leach pads).

1. 2. 3.

4.


Copper Mineralization

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Drill RRC09-27 grading 11.12% Cu over 8.5 feet . Supergene chalcocite, copper pitch oxide rim, chrysocolla, malachite.

Drill RRC09-27; further oxidation of chalcocite to cuprite, copper “pitch” and malachite.

Drill RRC09-X08 from an interval grading 0.33% copper. Chrysocolla, azurite and minor remnant sulfides.

Outcropping mineralization in pit.


Mining and Processing

Deposit amenable to conventional truck & shovel mining, heap leaching and SX-EW processing

Soluble copper mineralization allows for low-cost heap-leaching and & SX-EW processing to produce 99.99% pure copper cathode

Extensive metallurgical test-work averages 73% recovery

Low acid consumption of 25 lbs/ton

Stage I Solvent Extraction (SX): extraction & upgrade of copper ions from low-grade acidic leachate (liquor) from heap.

Stage II Electro-winning (EW): Copper extracted from the electrolyte & deposited onto cathodes


Phase I Permitting Status

Phase I permitting, restricted to private land, has reduced permitting requirements compared to an application on public lands. Main permits required:

Aquifer Protection Permit – previous application submitted in 2012 and renewed application will benefit from comments made during review

Water Quality Certification (Section 401)

Air Quality Permit

Pollutant Discharge Elimination System

Dredge and Fill permit (Section 404)

Landfill / Solid Waste Disposal

Dam Safety permit

Surface Water Appropriation Permit

Reclamation Plan

Retaining dam & pond with sump pump, French Gulch looking north


Exploration – New Porphyry Cu Target

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Extensive 150 metre spaced rock sample grid generated a large, coherent anomaly northeast of drill-defined mineralization

Defined by coincident elevated Mo, Cu & Au, with depressed Mn and Zn: classic porphyry Cu footprint

New target measures 1500 X 2000 metres and appears to be “sister” deposit

Same host rock as main deposit (quartz monzonite porphyry), but less foliated

Permit applications filed for a 5000 metre programme on both BLM and Arizona state land


Exploration – New Porphyry Cu Target


Exploration – IP Data Supports Cu Oxide Target


Exploration – IP Survey Indicates NE Extension


Sulphide Mineralization: Evaluating Gold Credits

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• Historical drill samples at Zonia have only been analyzed for copper as almost all holes terminate within the upper oxidized zone. Only the most recent drill programmes were deep enough to intersect primary sulphides, with several drill holes extending below the copper-oxide resource and intersecting underlying copper-sulphide mineralization.

• Cardero decided to test the idea that the underlying sulphide mineralization had potential to host significant gold grades. Eleven drill samples from storage were selected across a range of copper grades so that a good Au to Cu grade ratio curve could be established. All samples returned significant gold values, with an average Au:Cu ratio of 0.44:1.

Grades from select sulphide mineralization underlying the Zonia copper-oxide resource

TSX-V: CDU 19

Drill Hole From (ft)

To (ft)

Width (ft)

Gold (g/t)

Total Copper (%)

Copper Equivalent

(%)* RRC-10-CC 580 585 5 0.584 0.68 1.21

RRC-10-EE 365 370 5 0.258 0.70 0.94

RRC-10-EE 395 400 5 0.638 1.09 1.66

RRC-10-EE 570 575 5 0.174 0.39 0.55

RRC-10-HH 620 625 5 0.116 0.34 0.45

RRC-10-21 787 794.5 7.5 0.176 0.32 0.50

RRC-10-22 851 860 9 0.084 0.33 0.43

RRC-10-35 505 510 5 0.035 0.29 0.34

RRC-10-28 520 525 5 0.117 0.40 0.52

RRC-10-26 300 305 5 0.055 0.30 0.36

RRC-10-J1 410 415 5 0.048 0.33 0.39

*Copper Equivalent calculations use metal prices assumptions of $2.20/lb for copper, $1200/oz for gold, and $15/oz for silver. Copper equivalent calculations reflect gross metal content and have not been adjusted for metallurgical recoveries

There are approximately 855 sample intervals underlying the existing copper-oxide resource that have been analyzed for copper, and which could now be analyzed for gold, allowing the Company to further calculate copper equivalent grades for the sulphide mineralization. Ultimately though, additional drilling is needed to outline the extent and grade of sulphide mineralization.

Future Development

Cardero intends to drill test the Northeast Anomaly (18 holes, 5000m) permits from the BLM and the state of Arizona can be obtained within 60-90 days; refundable reclamation bonds would be required. Success at this new target would add significant upside to the project.

Additional work to be performed on the potential gold content in the sulphide target.

Prepare for Prefeasibility level studies to further advance the project towards production. This includes a programme of geotechnical and condemnation drilling , as well as infill drilling to convert Measured, Indicated and Inferred resources to reserves, and also potentially expand the deposit to the northeast.

Continue to advance environmental work and permitting for the mine plan. Some of the necessary baseline work and permit applications have already been completed.

For the first phase of development, as described in the PEA, a mine plan constrained to private land will offer the easiest permitting route for the project.

Cardero will also review potential projects within the copper space and look to potentially add projects of merit in the future.


Move Forward Project Schedule

* Hypothetical, dependent on positive results of the future PEA; Phase I Bankable Feasibility will maximize the rate of production attainable while limiting facilities to private land

Phase I permitting is estimated at 2.5 years. ^

** Phase II permitting involves expansion onto public land and as such the permitting time is less well constrained. It is estimated at 4 to 7 years, with 7.5 years allowed for in the project schedule.

^^ Phase II production time is unknown and additional life of mine is for illustrative purposes only.

The company will need to raise additional funds in order to move the Zonia project forward and there can be no assurance that it will be successful in doing so. If the Company is not

successful in raising funds, it may be forced to curtail or cease operations.

Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr 11 Yr 12 Yr 13 Yr 14 Yr 15

Phase I Private

Land

Prelininary Economic Assessment

Drill Inferred Resources and NE Zone

Metallurgical Testing

Bankable Feasibility Study*

Phase 1 Permitting^

Finance & Construction

Phase 1 Production

Phase II Public Land

Drill Resource Expansion

Phase II Feasibility Study

Phase II Permitting**

Construct Expansion

Phase II Production^^


Cardero Management

Sead Hamzagic, CFO • Mr. Hamazagic is a Chartered Professional Accountant

with 34 years of public practice experience and financial management experience. He has been, and continues to serve as, a CFO for several TSX-V and private companies, and is well-versed in reporting requirements for public companies.

Stuart R. Ross, CEO and President • Mr. Ross has had a distinguished career as a senior officer

and director of several public companies, including companies listed on the NASDAQ and TSX Venture exchanges.

• His sector experience includes mining, beverage production and distribution, medical services, gaming and merchant banking, including 17 years as a senior officer and director of Clearly Canadian Beverage Corp (1986 to 2003).

• Most recently, Stuart was President and CEO of El Tigre Silver Corporation, a TSX Venture listed silver exploration company (2007 to 2015).

• He supervised the exploration and engineering related to that company from an early exploration project up to the production of a NI 43-101 Feasibility Report and Reserve calculation.

John Drobe, Chief Geologist • John is a geologist with over 30 years geoscience experience,

specializing in porphyry copper-gold, epithermal and skarn deposits throughout Latin America. He graduated with B.Sc. and M.Sc., both in geology. Previously John held the position of Chief Geologist for Corriente Resources and was responsible for all aspects of exploration and resource definition at the company's Mirador, Panantza, and San Carlos porphyry copper deposits. Following the sale of Corriente in 2010, John was the Vice President Exploration for Dorato Resources and most recently Chief Operating Officer for Indico Resources in charge of developing the Irmin copper oxide deposit. John joined Cardero in 2015 as a result of the Zonia acquisition and serves as the Qualified Person, as defined by National Instrument 43-101. John also serves as an exploration manager and qualified person for Wealth Minerals.

Marla Ritchie, Corporate Secretary

• Marla brings over 25 years' experience in public markets working as an Administrator and Corporate Secretary specializing in resource based exploration companies to the Company. Since 2001, she has been the Corporate Secretary for Cardero Resource Corp. Between 1992 -- 2003, Marla worked for Ascot Resources Ltd, Brett Resources Inc., Golden Band Resources Inc., Hyder Gold Inc., Leicester Diamond Mines Ltd., Loki Gold Corporation, Oliver Gold Corporation and Solomon Resources Limited. She is also currently the corporate secretary for Corvus Gold Inc., Dorato Resources Inc., International Tower Hill Mines Ltd. and Wealth Minerals Ltd.


Directors Robert van Doorn, Director

• Mr. van Doorn is a mining engineer with over 50 years in mining and mining finance. Recently he was Chairman, President & CEO of Mundoro Mining Inc. (a public company developing the Maoling Gold project in China), Executive Vice President of Business Development for Rio Narcea Gold Mines S.L. (a public company with projects in Spain and Mauritania), and Executive Vice President of Golden China Resources Corporation (a joint venture with Kingsway Capital, a Hong Kong merchant bank, involved in Chinese mining investments). His career prior to 2002 includes positions as Senior Mining Analyst at Loewen, Ondaatje, McCutcheon, as Global Gold Analyst at Morgan Stanley and as Business Development Manager at Royal Dutch Shell.

• In a distinguished career, Mr. Van Doorn's achievements include investment recommendations and financing of successful exploration companies such as Great Basin Gold, Pangea Minerals Ltd., Platexco Inc., Argentina Gold and Arequipa, whose discoveries have been developed into major mines. At Rio Narcea Mr Van Doorn was instrumental in the acquisition of the Tasiast project in Mauritania.

• Mr. Van Doorn is currently non-executive Chairman of Tri Metals Mining and was previously director of Romarco Minerals, Leydenburg Platinum, Hana Mining, Golden China and Mundoro Mining.

Robert Kopple, Director

• Mr. Robert Kopple is an experienced investor, businessman and lawyer. He is involved in a broad range of corporate financing activities with public companies. Mr. Kopple is an experienced lawyer and a senior partner in a law firm based in Los Angeles specializing in estate planning, tax law and business transactions. He is an experienced investor with diverse interests in real estate and in a number of operating companies in mining, health care and technology. Mr. Kopple is a significant investor in Cardero Resource Corp.

TSX-V: CDU 23

Dr. Deepak Malhotra, Director

• Dr. Deepak Malhotra has a Ph.D. in Mineral Economics (1978) and M.S., Metallurgical Engineering (1973) from Colorado School of Mines and B.S., Metallurgical Engineering (1970) from Indian Institute of Technology.

• Dr. Malhotra with over 45 years of mining industry experience is a world renowned processing expert. He provides expertise in Process Design, Process Development, Plant Auditing and Troubleshooting and Capital and Operating Cost Estimates. He has utilized his education in Mineral Engineering and Mineral Economics coupled with his industrial experience in metallic/nonmetallic minerals and precious metals to find innovative solutions to mineral related problems. He holds four patents and has published over 80 articles and edited several books.

• After working for AMAX Inc. for 17 years, Dr. Malhotra started his own metallurgical testing and consulting company in 1990. The clients include World Bank/IFC, international financial institutions, mining companies and Governments. He has worked with mining organizations worldwide (from Kazakhstan to Chile and Canada to India).

• Dr. Malhotra's process work had led to commercialization of about 15 plants worldwide with capital ranging from $50 MM to $750 MM. He periodically teaches graduate course titled "How to Prepare Bankable Feasibility Studies and Short Course titled "Plant Auditing for Improved Metallurgical Performance", Operator Training Courses and Industrial Mineral Project Evaluation Short Course. He is a Registered Member of Society of Mining Engineers, Member of Canadian Institute of Mining and Metallurgical Engineering and QP for the Canadian Stock Exchange. He has been awarded Gaudin award and Arthur C. Daman Lifetime Achievement Award by the Society of Mining and Metallurgy and Exploration Engineers. Dr. Malhotra is currently a director of Canarc Resources, Blackrock Gold and Resource Development Inc.

TSX-V: CDU 24

Directors

Keith Henderson, Director • Mr. Henderson is a mining industry executive with 20 years' experience throughout Africa, Europe, and North

and South America. He was educated in Europe, graduating with B.Sc. (Hons) and M.Sc. in geology and has extensive experience in multiple mineral deposit types and commodities. After several years in consulting roles, Mr. Henderson worked with Anglo American Exploration in Europe and North America, leading a number of exploration projects and ultimately he was project manager for Anglo Coal as the company made its first entry into Canada. In 2007, Mr. Henderson joined Cardero Resource Corp. as Executive Vice-President, where he played a critical role in advancing the Pampa de Pongo through a positive scoping study and ultimate sale for US$100 million cash. Mr. Henderson is currently a director at Desert Star Resources, and Remo Resources.

Henk van Alphen, Director • Mr. Van Alphen has been in the mining business for over 36 years, first as an exploration drilling contractor,

then as President of Pacific Rim Mining Corp. Mr. Van Alphen laid the foundation for Pacific Rim becoming a successful South American-based resource company and was instrumental in the company’s entrance into South America. He has been a director of Cardero Resource Corp. (“Cardero”) since 1999, was the Chief Executive Officer of Cardero from May 14, 2001 to November 9, 2011, President of Cardero from April 10, 2000 to June 1, 2011, Managing Director of Cardero from November 9, 2011 to March 19, 2013 and Chief Executive Officer and President of Cardero again from March 19, 2013 to August 15, 2017. He is currently CEO and a Director of Wealth Minerals Ltd and is presently also a director of Blackrock Gold Corp., Ethos Gold Corp., Gelum Capital Ltd. (formerly Jagercor Energy Corp.) and Centenera Mining Corporation, all public natural resource companies listed on the TSX Venture Exchange (“TSXV”).

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Directors

STUART ROSS PRESIDENT & CEO Cardero Resource Corp. 2300-1177 West Hastings Street Vancouver, B.C., V6E 2K3 P 1 604 408 7488 ext 3883 C 1 778 980 7187 [email protected]


Contact Information

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mailto:[email protected]

July, 2020 Zonia Copper Oxide Deposit€¦ · This presentation contains forward-looking statements and forward-looking information ... July 31, 2016 $75,000 (paid) - January 31,

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